The Highland Corporation uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments-cutting and painting. The Cutting Department uses a departmental overhead rate of $15 per machine hour, while the Painting Department uses a departmental overhead rate of $9 per direct labour hour. Job 586 used the following direct labour hours and machine hours in the two departments:

The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 586 is $900.
Required: What was the total cost of Job 586 if the Highland Corporation used the departmental overhead rates to allocate manufacturing overhead?

Question

The Highland Corporation uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments-cutting and painting. The Cutting Department uses a departmental overhead rate of $15 per machine hour, while the Painting Department uses a departmental overhead rate of $9 per direct labour hour. Job 586 used the following direct labour hours and machine hours in the two departments:
 
 The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 586 is $900.
Required: What was the total cost of Job 586 if the Highland Corporation used the departmental overhead rates to allocate manufacturing overhead?

Quizplus · Accepted Answer

The Answer of The Highland Corporation uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments-cutting and painting. The Cutting Department uses a departmental overhead rate of $15 per machine hour, while the Painting Department uses a departmental overhead rate of $9 per direct labour hour. Job 586 used the following direct labour hours and machine hours in the two departments:
 
 The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 586 is $900.
Required: What was the total cost of Job 586 if the Highland Corporation used the departmental overhead rates to allocate manufacturing overhead?

The Highland Corporation Uses Departmental Overhead Rates to Allocate Its